Suboxone Film Case Explains Drug Prices in a Nutshell

The United States Supreme Court just ruled that a drug called Suboxone Film, made by a company called Indivior, can no longer exist as a monopoly. Suboxone Film is used to treat opioid addicts and generated over a billion dollars in revenue for Indivior last year. That company has been fighting in the courts to keep generic, cheaper, versions of the drug unavailable. They lost.

I think a quote from spokespeople from Indivior pretty much explains the horrific situation we currently have in the United States when it comes to expensive medication. In arguing before the court, the company’s legal team stated: An entire business, and the jobs and livelihoods that depend on it, will be in peril.

Basically, what they are saying is that if a generic drug that does the same thing but at a far cheaper price were to be introduced it would hurt the company. This is actually quite true. However, it is not the government’s job to protect a company from being run out of business by competition, although that message has largely been lost when it comes to the Food and Drug Administration and our nation as a whole.

The government makes it incredibly difficult to introduce generic drugs in a number of ways and this leads to a lack of competition. The FDA is essentially a tool used by established pharmaceutical companies to make it difficult for competitors to gain a foothold in the market. The loser in all of this is the people of the United States.

Indivior says that if Dr. Reddy’s Laboratory is allowed to introduce their generic substitute for Suboxone Film to the market then they themselves will introduce their own authorized generic. If that doesn’t tell you all you need to know then I’m not sure you will ever be convinced. Indivior has been more than able to introduce a cheap generic version of Suboxone Film for who knows how long. They haven’t done so because the United States has prevented competition. They say quite explicitly that if there is actual competition, they will introduce a cheap generic.

In the meantime, the people of the United States have been forced to buy an expensive drug in lieu of the cheaper substitute. This process subverts the glorious benefit of capitalism that Libertarians like myself extoll. If the market is allowed to operate largely in a free fashion then competition benefits everyone. It is when the government gets overly involved that everything gets messed up.

It’s important to understand that the FDA and the United States government as a whole are hurting us all the while claiming it is for our own protection. I’m not completely opposed to running trials for drugs to ensure their safety before allowing them to market, the problem is that the FDA isn’t doing that anymore. They are largely working for established companies and suppressing competition. They do this because they are bribed with fancy conferences, vacations for their families, and other benefits.

It took a lawsuit that made it all the way to the Supreme Court to change this particular instance and that should also tell you something. The case of Suboxone Film simply proves my point.